USDCHF,USDCAD Statements of FOMC members brought probability of rate rise this year practically to zero.
11:47 08/08/2007
Thus, yesterday at support of positive American data the rate of American currency remained stable on the whole spectrum of market. Let's remind that expecting announcement of FOMC decision where basic interest rates were discussed, market players did not hurry up with opening of trading positions.
Releases, issued before announcement of FOMC decision supported dollar. Thus preliminary value of labor productivity in the USA for the second quarter made +1.8% at forecast +2.1%. The previous value was revised from 1.0% to +0.7%.
Preliminary value of labor index per unit in the USA for the second quarter made +2.1%, at forecast +1.6% and previous value was revised from +1.8% to +3.0%.
Such indicator as consumer credit in the USA in June showed that consumer sector despite the situation, still extends. It confirms FOMC members' fears concerning rise in inflationary risks. Let's remind that the indicator made +13.1 bln. dollars at forecast +4.0 bln.dollars. The previous value was revised from +12.9 up to +16.0 bln. dollars.
However the main event was announcement of FOMC decision. Let's remind that as it was expected federal funds interest rate was left without changes at a level of 5.25%. But statement which was issued at the end of meeting was important for the market. Let's remind that main concern for FRS management is probable rise in inflation. It was noted that the nearest quarters there will be observed the moderate economical growth in the USA.
Yesterday's FOMC statements were unexpected by many players. Experts made a conclusion that probability of drop in interest rates in the USA this year is minimal. We still expect to see soon new tops of euro against dollar. However it is most likely to be final, after which we will see ling down correction.
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